1. Factory System and Free Enterprise

2. Industrial Revolution
Began in England in the 18th Century
Very limited American Manufacturing in the 18th century
Most production done at home using hands and simple tools
Technology innovations created a shift toward large-scale production
Picture is of an iron ore plant in Pennsylvania.

3. Technology Revolution
Spinning jenny
Produces many spools of yarn
Power loom
Wove & pressed thread into cloth
Water frame
Power machines in factories
Advances made it possible for any unskilled workers to produce cloth (textiles)
Especially children
Patent Law
Passed to protect rights of inventors

4. Free Enterprise and Factories
Samuel Slater
Built first successful water-powered textile mill in America
Workers and machines together under one roof
Most built near water source for power
People leave farms to work in factories for wages on a set schedule
Factory in Massachusetts

5. Free Enterprise and Factories
New England
ideal setting for growth of American factories
Land was not conducive to farming,
people willing to work in factories
Many fast moving rivers
Near ocean/ports

7. Free Enterprise and Factories
Minimum government interference
Competition, profit, private property, & economic freedom
Many people invested in industry during the War of 1812
Businessmen built factories and grew wealthy

8. Impact on Cities Industrial cities grew the quickest
Most on rivers
Needed water power
New England had many fast- flowing rivers
City disadvantages
Waste disposal was an issue
Fires were a constant threat
Overcrowded living conditions
City advantages
Jobs & attractions outweighed the dangers
Education, culture

9. Foundations of Free Enterprise
CAPITALISM – the freedom of individuals to invest their CAPITAL (money) in businesses of their choice in hopes of making money (profit!)
Businesses are FREE to operate with little government regulation
Businesses can keep PROFIT to reinvest & grow the company
Private Property
Profit Motive
Competition
Economic Freedom
Relatively Low taxes
COMPETITON fosters product development and lower pricing – good for business and customers!
Businesses’ product decisions (quality, quantity & price) are driven by CUSTOMERS
Relatively Low Taxes allow businesses to invest more capital
Ownership of private property (and other assets) by individuals or businesses allows full control of decision making

10. Page 198 in our book

11. What Free Enterprise looks like….
Businesses compete for customers through price and quality.
Competition helps businesses improve their products and services to meet the demands of their customer